Note 7 - Loan Payable to Officer

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

7.

Borrowings from Officer

On

February

4,

2016,

the Company entered into an unsecured revolving promissory note to borrow up to

$2,200,000

from G. Ward Paxton, the Company’s Chief Executive Officer (the “CEO Note”). Under the terms of the CEO Note, the Company

may

borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of

$2,200,000

at any given time through

March

2018.

On

September

30,

2016,

the Company renewed the CEO Note on the same terms, with the Company being able to borrow, repay and reborrow on the CEO Note as needed up to an outstanding principal balance due of

$2,700,000

at any given time through

March

2018.

On

February

9,

2017,

the Company renewed the CEO Note on the same terms, with the Company being able to borrow, repay and reborrow on the CEO Note as needed up to an outstanding principal balance due of

$3,400,000

at any given time through

March

2019.

Amounts borrowed under the CEO Note officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus

1%

(5%

at

September

30,

2016).

All outstanding borrowings and accrued but unpaid interest is due on

March

31,

2019.

As of

December

31,

2016,

the borrowings outstanding totaled

$2,885,000

and accrued interest totaled

$184,000.